Which of the Following Is TRUE of Dividends in Arrears

question 114

Multiple Choice

Which of the following is TRUE of dividends in arrears?

• A)Dividends in arrears are a liability on the balance sheet.
• B)Dividends in arrears are passed dividends on ordinary shares.
• C)Dividends in arrears are passed dividends on non- cumulative preference shares.
• D)Dividends in arrears are passed dividends on cumulative preference shares.

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Definitions:

Largest Share

The highest proportion or percentage of ownership, interest, or allocation.

Total Business

The complete range of commercial, industrial, or professional activities conducted by an organization or in an economy.

Invention

The creation of a new product, process, or idea that did not exist previously.

Development

A process of improvement in the material conditions of people through diffusion of knowledge and technology.